NAB wants to raise rates

National Australia Bank executives wanted to raise standard variable mortgage rates this week, after the RBA kept rates on hold on Tuesday, but NAB board members rejected the move, fearing a public backlash. NAB has tried to position itself as the people's bank over the last year. Banks are now under pressure to keep interest rates on hold for another month.

The RBA board will meet again on Melbourne Cup day in the first week in November to decide again whether to change the current cash rate setting from 4.5 per cent. Westpac has all but ruled out any increase this month following the decision and ANZ said there was “no immediate trigger” for a rate change. NAB and the Commonwealth Bank have said they “do not speculate” on changes.

Source: Herald Sun